Overall Market Health Summary, News & Notices:
Uncertainty, Confusion in the Market, Huge Market Swings....
I'd like to start off by saying that I respect everyone's decisions, wether to close the doors for the next couple weeks or to stay open offering curb side pick up in efforts to keep employees working. I talk to a lot of restaurant owners, managers and executive chefs each day, and I'm hearing that the decisions made were some of the hardest ones they've ever had to make while running their restaurants. Just know that if there is anything I can do to help, please let me know. We're all on the same team.
While restaurants are challenged with the decision to stay open or close, grocery stores, smaller butcher shops and food processors are going through meat as fast as it can be brought in. Some processors are trying to get as much food product made and into freezers while they still have workers and meat supplies. Grocery stores are buying everything by the truck load, just trying to keep their shelves stocked. Other butcher shops are making meat bundles in advance for customers to come pick up and fill their freezers, doing what they can to keep up with the demand.
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** My Potential idea for restaurants/butchery customers: People want to fill their freezers with quality meats, they want to support locally owned businesses... Why not consider putting together meat bundles for their freezers, thus keeping your employees busy cutting steaks, packaging items, possible even buying half pigs and breaking them down. Demand for processed beef and pork sides is extremely high. You can buy locally raised market pig sides from us relatively cheap, and it's a great way to sell the entire side, and increase your value with your existing customers.
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** My Second idea for restaurants: People may not want to buy an entire pig, nor have to figure out how to cook it. What if you were to offer fully cooked family meal items like lasagna, meat loaf, spaghetti, sides, etc. that people can buy and put in their freezers? Selling curb pick up meals is a great way to start, but why not offer them higher volume purchases for their freezer? There will come a time when people will not want to leave their houses unless they have to.
Ground Beef - Demand for ground beef is at an all time high it seems. On an average week, Wenneman grinds in house and sells between 2,500 and 3,000 pounds of fresh ground beef to wholesale and retail customers. As of 4 pm Thursday, Wenneman had ground and sold 25,000 pounds of fresh ground beef this week alone.
Crazy numbers - High volumes of meat are being processed at Wenneman. Our slaughter of beef has doubled and our pork slaughter has increased dramatically. Wenneman also brings in truck loads of pork from Seaboard and beef from other providers. There are days this week when we may have two or three truck loads of meat being delivered to us. This is truly unprecedented.
High volume combo orders - Each week, I sell 2,000 pound containers called "combos" of pork or pallets of beef to food processors and other butcher shops. These combos mostly are boneless Callies, 72% pork trimmings, fresh bellies, cushion meat and more. Orders for those combos have to be placed a week in advance to lock in the price I give the customers. I can no longer get pricing from our providers, as they just don't know what the markets will be when the pigs are being processed. Thus, we have to buy "blind" and just pay what they charge us when it arrives at our plant. Needless to say, several of those food processors have decided to close at the end of this week for at least 2 weeks.
Market News: Expect unprecedented price increases across the board. However, at least one major warehouse provider is being associated with "price gouging", and being investigated. Be cautious, be smart, be informed when making your purchases. President Trump stated last week that "price gouging" would not be tolerated and those who do, will be prosecuted. This is not a political newsletter, but this is an important note, to help keep prices in line during this time.
Retailers are finding unprecedented traffic in supermarkets across the country. Stocking up and eating at home are in the cards for many Americans during this health crisis. Meat counters were watching the shelves for cut selections of consumers as they plan eat at home menus. They are joining with the processors in holding on to wide margins on all meat products. Retail prices have shown no signs of weakening and there appears to be little reason for a retailer to run features when they can sell all they can buy at prevailing prices.
Testing for the virus will ramp up during the coming weeks and we will find more people are infected. Coronavirus will continue to spread and all people will continue to eat. Eating patterns will change. Food selection will change. More food will be consumed at home. Understanding how those changes impact the demand for proteins will be a work in progress.
Grain Futures: Corn prices moved higher. Futures prices are leaving little incentive for farmers to carry grain forward. This is encouraging farmers to market grain now and the corn basis is weakening at 60 over the May board in Guymon, Oklahoma.
Upcoming "National Days" - Add Some Fun to Your Daily Specials - I'm not sure who thinks of these things or how in the world they became "National Days". Enjoy!
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March 20 - National Ravioli Day
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March 21 - National French Bread Day
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National Corn Dog Day
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March 22 - National Bavarian Crepes Day
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March 23 - National Chip & Dip Day
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National Melba Toast day
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March 24 - National Chocolate Covered Raisin Day
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National Cheesecake Day
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March 25 - National Lobster Newburg Day
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March 26 - National Nougat Day
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National Spinach Day
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March 27 - National Spanish Paella Day
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